- EUR/NZD is starting to decelerate within the daily correction.
- Bulls have eyes on a continuation of the bullish trend.
EUR/NZD has corrected to a 50% mean reversion and there are prospects of a phase of consolidation at this juncture and a continuation to the upside if the structure holds.
The following is an analysis of the daily and hourly chart that illustrates the bullish thesis.
EUR/NZD daily chart
There is a confluence of the deeper Fibonacci retracements at this juncture from which bulls will look to engage from.
The upside potential is compelling for a continuation of the daily recovery from weekly lows.
EUR/NZD hourly chart
From a near term perspective, the bulls are drawing into the hourly M-formation's neckline which is a bullish pattern from within the daily support structure.
A break above the near term resistance opens a layer of further resistance structures that the bulls will need to accomplish.
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